Growth, agglomeration, and urban congestion

Shota Fujishima

Journal of Economic Dynamics and Control, 2013, vol. 37, issue 6, 1168-1181

Abstract: We consider a microfounded urban growth model with two regions and a mass of mobile workers to study interactions among growth, agglomeration, and urban congestion. Unlike previous research in the urban growth literature, we formulate the model as a one-shot game and take an evolutionary game-theoretic approach for stability analysis. Our approach enables us to analyze stability of nonstationary equilibria in which populations of each region are not constant over time. We show that if both the expenditure share for housing and inter-regional transport cost are small, a stable stationary equilibrium does not exist. Moreover, in such a case, we show that there can exist a stable nonstationary equilibrium in which mobile workers agglomerate in one region at first but some of them migrate to the other region later. We argue that such a nonstationary location pattern is related to return migration.

Keywords: Growth; Agglomeration; Urban congestion; Economic geography; Return migration; Population game; Evolutionary game theory (search for similar items in EconPapers)
JEL-codes: C73 O18 R11 R12 R23 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:37:y:2013:i:6:p:1168-1181

DOI: 10.1016/j.jedc.2013.02.001

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